Course Reflection: Creating Competitive Advantage
One essential theme which has emerged throughout this course is the need to offer a strong and unique value proposition to customers to retain a competitive advantage. As the market grows increasingly crowded, and consumers are better equipped to research prices and various attributes of different products and services, organizations must offer value by addressing the needs of a niche market. It is difficult to compete on price alone, or even through basic services such as the speed of shipping, given the presence of Amazon.
One possible way to create a competitive advantage is through greater integration of marketing, product development, and other organizational departments to create a unique brand for the organization. Customers can identify with the brand on an interpersonal level that transcends the product or service itself. Social media can be a very important way to do this. According to Lucker (et al., 2016) for example, in the past IT was a discrete organizational function. Now, offering services or products online or marketing online is something that must be considered from the very beginning of a product launch. IT is no longer simply part of the production of a product, or a way for employees to communicate internally.
Customers can interact almost immediately with the social media of a company and offer feedback about a product after it launches. Creating a unique online voice for the brand, and also using user comments and online feedback to adapt products to customer needs are ways to refine the value proposition for the customer in an inexpensive, organic fashion.
The need for a clear, unique brand image and value proposition today highlights how the conception of stakeholders must be enlarged beyond that of shareholders in the company. Employees, customers, and even people who are affected by the way the product is used and advertised on social media are all engaged with the company. If a company is seen as outdated, irresponsible, or irrelevant, it will receive feedback almost immediately. The brand image and value proposition are not something that can be static, but must be constantly managed.
References
Lucker, J., Hendrawirawan, D., & Parry, C. (2016). The articulate architect: A practical approach
to communicating with business stakeholders. Business Intelligence Journal, 21(4), 10-18.
